Dispute
In prediction markets, a dispute happens after a tentative outcome is announced but before final settlement. A participant claims that the resolution does not match the market’s rules or source of truth.
Disputes are designed to protect accuracy. They allow the market to pause resolution and re-examine evidence before payouts are finalized. The dispute process usually follows predefined steps. These may include evidence submission, review periods, or validator voting depending on market design.
Disputes introduce friction but increase trust. Without them, incorrect resolutions could permanently damage confidence in prediction markets data. For analysts, disputes explain delays and revisions in resolution timelines. They are an important part of understanding why some markets take longer to finalize than others.
Why It Matters
Disputes safeguard correctness. They ensure prediction markets resolve based on facts, not errors or rushed decisions.
What is a dispute in prediction markets?
In prediction markets, a dispute is a challenge raised against a proposed outcome. It signals that someone believes the resolution is incorrect. The market then enters a review process. This prevents premature or faulty settlement.
When can a prediction market dispute be triggered?
A dispute can usually be triggered after an initial resolution is proposed. It must occur within a defined time window. The disputing party must point to a conflict with the market rules or source of truth. Late disputes are typically not allowed.
What happens during a dispute in a prediction market?
During a dispute, resolution is paused. Evidence is reviewed according to the market’s rules. Validators or governance mechanisms may be involved. The outcome is either confirmed or corrected before final settlement.
Real-World Example
On Polymarket, if an event resolves based on an unclear announcement, a participant may dispute the outcome. The market remains unresolved until the correct source is reviewed.
Dispute and FinFeedAPI
FinFeedAPI’s Prediction Markets API provides prediction markets data with resolution. Analysts can detect when markets enter dispute, track delays, and monitor final outcomes. This supports lifecycle analysis, reliability assessment, and backtesting accuracy. The API enables consistent handling of dispute-related data across prediction markets.